Turkish banks: fixed deposit interest, overnight money, gold, foreign exchange and crypto accounts - 2024

What do Turkish banks offer?

In Turkish banks, investors can find a wide range of financial products tailored to different needs. Here is a summary of the main offerings:

• Fixed deposit accounts: These offer fixed interest rates for a specific term and are a good choice for investors looking for a safe and predictable return.
• Current accounts: More flexible than fixed-term deposit accounts, they allow daily access to capital, although usually with lower interest rates.
• Gold accounts: An interesting option for investors who want to invest in physical gold, which can provide portfolio diversification and protection against inflation.
• Foreign exchange accounts: Suitable for investors who want to hold and manage money in different currencies, especially those with international financial transactions.
• Crypto accounts: These accounts allow users to buy, sell, hold and trade cryptocurrencies such as Bitcoin, Ethereum and others.

Each of these forms of investment offers specific advantages and risks. It is important to consider current market conditions and each bank's specific terms and conditions.

Fixed deposit accounts

Fixed-term deposit accounts at Turkish banks are a popular form of investment for savers looking for a safe and stable return. These accounts offer a fixed interest rate for a specific term, which can vary depending on the bank. They are ideal for investors who want to invest their money for a set period of time without needing access to it during that time. Interest rates can vary depending on the market and the bank, so it is advisable to compare offers from different banks to find the best one for your needs. Fixed-term deposit accounts are particularly suitable for medium to long-term savings goals.

Here is some general information about fixed deposit accounts in Turkish banks:

1. Online banking interest rates: Banks typically offer higher interest rates for fixed-term deposit accounts opened through online banking than for accounts opened in branches. For example, Ziraat Bank offered a higher interest rate for online branches compared to branch deposits​.
2. Electronic term accounts: These accounts differ from traditional fixed-term deposit accounts in that they have no branches and associated operating costs, allowing for higher interest income. They can be opened online at any time.
3. Interest rates from different banks: Different Turkish banks offer different interest rates for fixed deposit accounts. Banks offering such accounts include Ziraat Bank, Halkbank, Vakıfbank, Şekerbank, Odeabank, İş Bankası, TEB, Denizbank, Akbank, QNB Finanzbank, Fibabanka, Garanti BBVA, ING Bank, Yapı Kredi, Anadolubank, Alternatif Bank , Burgan Bank, HSBC, Vakıf Katılım, Albaraka Türk and Kuveyt Türk​.
4. Welcome interest: Many Turkish banks offer attractive welcome interest rates when opening a fixed-term deposit account for the first time. The duration and amount of this interest varies depending on the bank.

“Welcome interest” is an incentive that some banks offer new customers for opening an account, typically a savings or time deposit account. This concept is also common in various banks in Turkey. Here are some key aspects of welcome interest rates:

1. Higher interest rates for new customers: Banks often offer higher interest rates for customers opening an account for the first time. These interest rates are usually valid for a limited period of time and are used to attract new customers.
2. Limited time offers: Welcome interest rates are usually valid for a set period of time after account opening. This can range from a few weeks to several months.
3. Different terms and conditions: The duration and amount of the welcome interest varies from bank to bank. For example, some banks offer higher interest rates for the first 90 days, while others may offer shorter or longer periods.
4. Valid for different account types: Although welcome interest rates are often found on fixed-term deposit accounts, they can also be offered for other account types such as current account accounts or even special savings plans.
5. Limit to new customers: These interest rates are generally intended exclusively for new customers of the bank. Existing customers who already have an account with the bank are usually excluded from these offers.

It's important to fully understand the terms of the welcome interest rates, including how long the offer lasts and what happens to the interest after the offer period ends. Customers should also consider other aspects such as fees, minimum deposit requirements and accessibility of capital during the life of the offer.

This information provides a general overview of fixed-term deposit accounts in Turkish banks. However, it is important to contact the relevant banks directly for the most up-to-date information as interest rates and conditions can change.

interest rates

Interest rates, particularly for savings products such as fixed-term deposits and call money accounts, can vary greatly depending on the economic situation, central bank policy and inflation rates. In recent years, interest rates have changed significantly in many countries, including Turkey.

1. Global trends: Globally, many central banks have cut interest rates in response to the economic challenges of recent years, including the COVID-19 pandemic. This led to historically low interest rates for savings products in many countries.
2. Situation in Turkey: In Turkey, interest rates have undergone significant changes in recent years due to various economic factors such as inflation and currency fluctuations. The Turkish Central Bank has adjusted key interest rates several times to respond to economic developments, which in turn affected the interest rates for fixed-term and overnight deposit accounts.
3. High inflation: Turkey has experienced high inflation rates in some recent years, often leading to higher interest rates on savings to offset inflation.
4. Bank-specific interest rates: Interest rates vary from bank to bank and can also vary within a bank depending on the product, term and amount. Turkish banks have adjusted their interest rates for fixed-term and overnight deposit accounts in response to the economic situation and central bank policy.

For accurate and up-to-date information about interest rates, it is best to contact the banks directly or consult the official publications of the Turkish Central Bank. Also note that historical interest rates do not necessarily reflect future trends because they depend on many variable economic and political factors.

Current accounts

Call money accounts in Turkish banks offer a flexible investment option that allows savers to access their money on a daily basis. This type of account features variable interest rates, which are typically lower than interest rates on fixed-term deposit accounts because the funds can be withdrawn at any time. Daily money accounts are suitable for investors who value flexibility and do not want to invest their money over a fixed period of time. It is important to compare current interest rates and terms at different banks as these can vary.

Here is some general information about money market accounts in Turkish banks:

1. Flexibility: Call money accounts are characterized by their high level of flexibility. Investors can access their money at any time, making these accounts ideal for short-term savings goals or as an emergency reserve.
2. Variable interest rates: In contrast to fixed-term deposit accounts, call money accounts offer variable interest rates. These often depend on current market conditions and can change accordingly.
3. Banks that offer current account accounts: Many Turkish banks offer current account accounts. These include both large, established banks and smaller, specialized institutions. Some of the more well-known banks are Ziraat Bankası, İş Bankası, Garanti BBVA, Akbank, Yapı Kredi, Halkbank, Vakıfbank and Denizbank.
4. Online banking options: Many Turkish banks offer online banking options for money market accounts. This allows customers to conveniently manage their accounts and conduct transactions online.
5. Minimum deposit and fees: Some banks may require a minimum deposit to open a money market account. Fee structures can also vary, so it is advisable to find out more from the respective bank in advance.
6. Security of deposits: As with all banking products in Turkey, deposits in call money accounts are protected up to a certain amount by the state deposit protection fund.

It is important to compare current offers and conditions from different banks as interest rates and conditions can change. Investors should also consider the economic situation and inflation rates in Turkey as these factors may affect the returns on their investments.

Gold accounts

Gold accounts are a popular form of investment in Turkey and offer a unique way to invest in physical gold without having to physically store it. Here is some general information about gold accounts in Turkish banks:

1. Functionality: Gold accounts allow investors to buy, hold and sell gold in electronic form. The amount of gold in the account is recorded in grams.
2. Security and convenience: Investors do not have to worry about the security and storage of physical gold. Instead, they can conveniently manage their gold investments through their bank account.
3. Banks with gold accounts: Several Turkish banks offer gold accounts. These include major banks such as Ziraat Bankası, İş Bankası, Garanti BBVA, Akbank, Yapı Kredi, Halkbank, Vakıfbank and Denizbank. Some specialized banks and financial institutions also offer such accounts.
4. Buying and selling gold: Customers can buy and sell gold through their account at current market prices. Some banks also offer regular savings plans in which gold is automatically purchased at regular intervals.
5. fees and costs: Gold account fee structures vary depending on the bank. It is important to find out about any account management fees, transaction costs and other fees.
6. Tax aspects: Investors should also inform themselves about the tax implications of investing in gold through bank accounts as these may vary by country.

Gold accounts offer an attractive alternative for investors who want to invest in gold without having to deal with the challenges of storing and security of physical gold. However, it is important to compare the offers and conditions of different banks and to take your own investment strategy and the current market situation into account.

Foreign exchange accounts

Foreign exchange accounts with Turkish banks offer investors and business people the opportunity to hold and manage money in different currencies. This type of account is particularly suitable for people who regularly conduct international transactions or want to protect themselves against currency fluctuations. Here is some general information about foreign exchange accounts in Turkey:

1. Diverse currency options: Turkish banks offer foreign exchange accounts in various currencies including US dollars, euros, British pounds and sometimes other currencies such as Swiss francs or Japanese yen.
2. Flexibility: Foreign exchange accounts make it possible to hold, receive and send money in the respective foreign currency. This makes international business transactions and personal money transfers easier.
3. Exchange rates: Conversion from one currency to another is done at the bank's current exchange rates. These rates may change daily depending on fluctuations in global foreign exchange markets.
4. fees and costs: Account opening, maintenance and currency conversion fees may apply. These fee structures vary depending on the bank.
5. Banks with foreign exchange accounts: Many major Turkish banks such as Ziraat Bankası, İş Bankası, Garanti BBVA, Akbank, Yapı Kredi, Halkbank, Vakıfbank and Denizbank offer foreign exchange accounts.
6. interest: Some foreign exchange accounts may offer interest on foreign currency balances held, although these interest rates are often lower than those offered by fixed-term or overnight deposit accounts in the local currency.
7. Tax considerations: Investors should consider the tax implications of foreign exchange accounts as these may vary by country and specific laws.

Foreign exchange accounts are a convenient option for those who regularly work with different currencies. As with any financial decision, it is advisable to compare the offers from different banks and find out about the respective conditions and fees.

Crypto accounts

Cryptocurrency accounts, also known as crypto accounts, are an increasingly popular form of digital investment in Turkey and worldwide. These accounts allow users to buy, sell, hold and trade cryptocurrencies such as Bitcoin, Ethereum and others. Here is some general information about crypto accounts:

1. Banks and cryptocurrencies: Traditional banks typically do not offer direct cryptocurrency accounts. Instead, crypto accounts are usually provided by specialized crypto exchanges or trading platforms.
2. Turkish crypto trading platforms: There are several crypto trading platforms in Turkey that allow buying and selling cryptocurrencies. The most well-known include BTCTurk, Paribu and BtcTurk | Per.
3. Cryptocurrency wallets: To manage cryptocurrencies, users need a digital wallet. There are different types of wallets including online wallets, mobile wallets, desktop wallets and hardware wallets.
4. Security and Risks: Cryptocurrencies are known for their high volatility and carry risks that should be carefully considered. The security of cryptocurrencies depends heavily on the security of the chosen wallet and platform.
5. Regulations and legal matters: The legal situation and regulation of cryptocurrencies can change quickly, both in Turkey and internationally. Users should always inform themselves about the latest legal regulations.
6. Tax aspects: Profits from trading cryptocurrencies may be subject to tax. It is important to find out about the tax obligations regarding cryptocurrencies in each country.
7. Investment strategy: Cryptocurrencies should be viewed as part of a diversified investment strategy. Due to their volatility and risks, it is advisable to only invest a portion of your investment capital in cryptocurrencies.

Cryptocurrencies offer innovative investment opportunities, but also bring with them specific risks and challenges. Thorough research and prudent risk management are essential for anyone looking to invest in cryptocurrencies.

The difference between a fixed-term deposit account and an electronic time deposit account:

The difference between a term deposit account and an electronic term account lies primarily in the way these accounts are managed and accessed, and sometimes in the interest rates offered. Here are the key differences:

1. Account opening and administration:
   • Fixed deposit account: Traditional time deposit accounts are often opened at a bank branch. These accounts are managed either in person at the branch or through limited online banking capabilities.
   • Electronic appointment account: Electronic time accounts are opened and managed entirely online. They enable customers to conveniently carry out transactions via internet banking or mobile apps.
2. Accessibility and convenience:
   • Fixed deposit account: Accessing fixed deposit accounts may be less convenient if an in-person visit to the bank branch is required.
   • Electronic appointment account: These accounts offer greater convenience and accessibility as all operations can be carried out online.
3. interest rates:
   • Fixed deposit account: Interest rates for traditional fixed-term deposit accounts can vary depending on the bank and market situation.
   • Electronic appointment account: Electronic term accounts often offer higher interest rates than traditional term deposit accounts because banks can pass on the savings from the reduced administrative effort and the lack of branch maintenance costs to customers.
4. Costs and fees:
   • Fixed deposit account: Traditional fixed-term deposit accounts may incur fees for opening or maintaining the account.
   • Electronic appointment account: These accounts typically have lower or no fees due to the lower operating costs for the bank.
5. target audience:
   • Fixed deposit account: Suitable for customers who prefer traditional banking and value personal contact with the bank.
   • Electronic appointment account: Ideal for customers who prefer the convenience and flexibility of online banking.

In summary, electronic term accounts offer a modern, flexible and often cheaper alternative to traditional term deposit accounts, especially for customers who are familiar with and prefer online banking.

Withholding tax rate in Turkey

The withholding tax rate refers to the rate of tax withheld directly from the source of an income, such as interest earned from bank accounts or dividends from stocks. This tax rate varies depending on the country, the type of income and sometimes the status of the recipient (e.g. whether the person is a resident of the country or not).

In Turkey, interest income from bank accounts, including time deposits and money market accounts, as well as other types of income such as dividends and rental income are subject to withholding tax. The specific withholding tax rate in Turkey is subject to change and is determined by Turkish tax legislation.

It is important to be aware of current withholding tax rates as they are subject to change and depend on various factors. In addition, international investors may be subject to different regulations depending on the double taxation agreement between their home country and Turkey.

For the most accurate and up-to-date information, it is advisable to consult the official publications of the Turkish Tax Authority or consult a tax advisor.

Disclaimer: The information provided in this document is for informational purposes only and does not constitute investment advice, a recommendation or a solicitation to buy or sell any financial products or services. The information has been carefully researched and compiled, but no guarantee can be given as to its accuracy, completeness or timeliness of the information is adopted. Economic conditions, laws and regulations are subject to change and any investment decision should be made based on individual advice from qualified experts. Neither the author nor the platform accepts any liability for any direct or indirect loss or damage that may arise from the use of this information.